Online Bank Lets Customers Pay What They Want for Checking

GoBank to offer option of $0 to $9 on checking accounts

(Newser)
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An online-only bank called GoBank will be rolled out in the next several weeks with a buzz-worthy offer: Customers will pay what they think is fair for a checking account—even if that amount is $0 per month, reports MarketWatch. Parent company Green Dot, which provides prepaid debit cards, is hoping to lure younger, tech-savvy mobile users disenchanted with the banking industry. Those customers, however, won't escape all fees.

In fact, the bank hopes to make the bulk of its money from ATM withdrawals and other swipe fees, along with miscellaneous charges for balance inquiries and foreign transactions. So why the pay-what-you-wish offer on checking? The answer might have something to do with free publicity. "In my mind we've already gotten a benefit out of it," Green Dot CEO Steven Streit tells American Banker. "We've got 300 million media impressions."

Checking at a Credit Union is always free (in fact they pay you a dividend to have money in the checking account, with no minimum limit) and there are no ATM charges if you use the CU's ATM. Why do people still use banks?

schmidtkoff

Apr 24, 2013 6:09 PM CDT

I joined up with the first internet only bank, I think it was late 1990. SFNB - Security First Network bank. It was all free. Had an atm card and everything. Stayed with them until it was taken over by, I think, The Royal Canadian bank, or something like that. But I wouldn't go for this deal. I rarely use cash, atm only. And an occasional check.

123Och32

Apr 24, 2013 2:41 PM CDT

We have no money for checking or savings accounts, since the republicons stole it all to give to their rich, fat-cat friends.

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